Judge calls for another hearing on CVS-Aetna deal: 3 things to know

A federal judge ordered an additional hearing for CVS Health's $69 billion acquisition of Aetna, even though the companies completed their deal Nov. 28, according to the Hartford Courant.

Here are three things to know:

1. U.S. District Judge Richard Leon previously raised the prospect of not approving the deal during a routine legal process post-transaction, according to Reuters. Mr. Leon could order CVS to stop its integration of Aetna as he further reviews any antitrust concerns related to the deal.

2. Mr. Leon ordered a hearing to address the matter on Dec. 18, according to the Hartford Courant. Specifically, Mr. Leon questioned whether antitrust issues could persist despite Aetna's Medicare Part D sale to WellCare Health Plans. Mr. Leon said at $50 million to $100 million, the Part D divestiture reflects only "one-10th of 1 percent of this $69 billion deal."

3. Federal law requires a judge to sign off on antitrust approvals, but it is often a formality. Deals typically close before this sign-off, given prior approval from the Department of Justice. While Mr. Leon can't block CVS' takeover of Aetna, he can question whether the Justice Department's review should have been broader, according to the report.

More articles on payers:
Anthem's retroactive denial policy keeps patients from seeking care, physicians say
Trump administration is promoting Medicare Advantage
Walgreens CEO says he's open to expansion of Humana partnership on senior health clinics

Copyright © 2022 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Webinars

Featured Whitepapers

Featured Podcast

Top 40 articles from the past 6 months